10.04.2025 13:20
French Finance Minister Eric Lombard stated that the French government has lowered its 2025 growth forecast to 0.7% following the increase in U.S. customs duties.
The discussions surrounding the customs duties announced by U.S. President Donald Trump continue to resonate in Europe. The growth forecasts for France, the second-largest economy in the Eurozone, have changed.
As the global trade war escalates, French Finance Minister Eric Lombard stated that the French government has lowered its 2025 growth forecast due to uncertainties in global trade.
DROPPED FROM 0.9% TO 0.7%
When presenting the 2025 budget, the government had predicted an annual growth of 0.9%, but Economy Minister Eric Lombard said in a statement to TF1 television that this would be reduced to 0.7%.
NEGOTIATIONS WITH THE U.S. WILL AFFECT GROWTH
In response to a question about a possible downward revision, Minister Lombard stated, "It will depend on the negotiations to be initiated with the U.S. and the decisions made regarding customs duties. If we succeed in lowering the tariffs, it could be even better; if we fail, we will see."
"WE HOPE FOR AN AGREEMENT"
Speaking about Trump's announcement to suspend the tariffs for three months, Lombard said, "It's good news, but we must remain calm." The French minister also added that he hopes to find "a new agreement" with the Americans.
OFCE HAD LOWERED ITS FORECAST TO 0.5%
The Bank of France revised its 2025 growth forecast to 0.7% in March, while the French Economic Observatory (OFCE) had lowered its forecast to 0.5% on Wednesday.